Stockholders, employees and environmentalists are examples of stakeholders whose interests and needs often conflict.
<h3>Who is a
stakeholder?</h3>
A stakeholder can be defined as an independent individual, organization or social group that has an interest in a particular business organization (company), and as such they can either affect or be affected by the decisions taken in the business.
This ultimately implies that, stockholders, employees, investors, and environmentalists are examples of stakeholders whose interests and needs often conflict.
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Answer:
Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.
Explanation:
FASB is an acronym for Financial Accounting Standards Board. The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors. It was founded in 1972 but began operations fully on the 1st of July, 1973 by replacing the Accounting Principles Board (APB) and American Institute of Certified Public Accountants (AICPA).
When the operating activities section of the statement of cash flows is reported using the indirect method, the FASB requires that, you report net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.
Hence, the indirect method for the preparation of the operating activities section of the statement of cash flows reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.
Some examples of operating activities are cash revenue from the sales of a product, cash paid as an expense for merchandise etc.
Answer: 9.6%
Explanation:
Expected rate of return on the stock will change by beta times the unanticipated
change in the market return:
1.2 ( .08 - .10) = -2.4%
• Therefore, the expected rate of return on the stock should be revised to:
.12 - .024 = 9.6%
Answer:
A major problem with the implementation of an annually balanced budget is that it magnifies the fluctuations in the business cycle.
